Tips for trading psychology

Tips For Mental Toughness of trading psychology

Here are three things you can do to keep your mind and body focused on the trading:

1. Be aware of what is going on in your mind, body and feelings. Slipping into an internal focus seems automatic because we aren't fully aware of it as it is happening. Being aware of what the mind is saying and how we are feeling is the first important step in mental toughness. You can catch yourself before things spiral out of control.

2. Know what trading actions are important to take. These are high-value actions (HVAs) under the trader's control. HVAs are relevant to trading and include identifying sound trade setups and solid entry triggers. You must know these cold and be ready to execute them.

3. Commit to high value actions regardless of how you feel. This means being willing to accept unwanted thoughts and feelings because trading well is more important than feeling good. Maintaining an external focus and initiating positive trading actions may not be easy when feeling down, but it's certainly not impossible. Like all skills, it takes practice.

If your psychology is "tarding," there is nothing I can think of to help you.
T2W edit: Thread title spelling corrected 21/03/11.

However, trading psychology is another matter. There are volumes written on this subject, however I believe that it comes down to what will work for you.

I can only relate what seems to work for me. Two of my weaknesses are discipline and focus. I have worked to reduce the effort required to trade my strategy. Thus focus is not as much of an issue. I keep a journal so discipline is attacked. And I publish my trading online, so lack of focus and discipline becomes evident to all. So I use my ego as a feedback mechanism. I have been tempted to do a trade outside my rules because of emotion. But I have passed because I would have to publicly explain it.

HowardCohodas said:

I can only relate what seems to work for me. Two of my weaknesses are discipline and focus.

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Another weakness is not having a clue about what you're doing. Still another is the fact that you seem to be a compulsive liar.

I would imagine that trading with your pants ablaze can't help either.

First thing in trading psychology is not to "pull a howard".

Second about trading psychology, i could say a bit more cos i am naturally introverted and introspective person and so psychology of trading makes alot of my time.

BUT Sandra Bullock is on the telly ans she is WELL FIT so you will have to wait.

aj7harrison,

I apologize for the exuberance of my colleges. They pursue their mission of anti social behavior with undiminished vigor. I am their current objective. They don't get that this behavior may be inappropriate in a thread attempting to address a serious matter.

bloody hell are you Audley Harrison?

Ignore HowardCohodas, he doesn't know anything about the psychology of trading. He thinks that bcause he can fly a plane he understands teh psychology of trading, but his positions are littered with so much affirmation bias and self efficacy that being that there is a bias named after him - namely, "pulling a howard".

Example:

Howard: "I just bought some deep OTM Johnson and Johnson calls"
Me: "Sounds interesting howard, what's the idea behind the trade?"
Howard: "Well, I went to KFC for a bargain bucket and they put two extra chicken wings in!"
Me: "err... so?"
Howard: "So J&J make Andrex and chicken wings give my wife the trots!"
Me; "Howard, you're pulling a howard".

Thank youuuuuuuuuuu

They average trader asks himself - How you much I'll make. The good trader asks himself - How much I can lose.

Hope you got the point.

HowardCohodas said:

aj7harrison,

I apologize for the exuberance of my colleges. They pursue their mission of anti social behavior with undiminished vigor. I am their current objective. They don't get that this behavior may be inappropriate in a thread attempting to address a serious matter.

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What colleges did you study at Howard ?